Westpac's Sale of Pacific Businesses Has Been Denied by Local Regulator

Westpac, an Australian bank and financial services provider, today announced that its sale of Pacific businesses has been denied by the local regulator.

The transaction was firstly announced back to 7 December 2020, which was part of its strategy to simplify its operations and focus on banking in Australia and New Zealand.

The sale of Westpac Fiji and Westpac's 89.91% stake in Westpac Bank PNG Limited – to Kina Securities Limited (ASX:KSL) (Kina Bank) for up to $420 million was subject to regulatory approvals in both Fiji and Papua New Guinea.

On 22 July 2021, Papua New Guinea's Independent Consumer and Competition Commission (ICCC) released a draft determination indicating it proposed to deny authorisation to Kina Bank for the proposed acquisition of Westpac's stake in Westpac Bank PNG Limited.

The ICCC has now released its final determination confirming it has denied authorisation.

Westpac acknowledges the ICCC’s determination and will continue to operate these businesses while it reviews the impact on the sale to Kina Bank.

As Fazzaco reported earlier, Westpac has completed the sale of Westpac Lenders Mortgage Insurance Limited (WLMI) ​to Arch Capital Group Limited Ltd (Arch), a global leader in providing specialty insurance, reinsurance and mortgage insurance solutions.